Question: Please help me understand how to compute for these areas MontyCompany sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided
Please help me understand how to compute for these areas
MontyCompany sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan.
January 1,
December 31,
2020
2020
2021
Projected benefit obligation$2,780,000$3,629,200$4,170,536Accumulated benefit obligation1,910,0002,446,0002,913,000Plan assets (fair value and market-related asset value)1,690,0002,887,0003,770,000Accumulated net (gain) or loss (for purposes of the corridor calculation)0199,000(23,000)Discount rate (current settlement rate)9%8%Actual and expected asset return rate10%10%Contributions1,028,000594,300
The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $400,000in 2020 and $473,000in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,459,500. No benefits have been paid.
Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2020 and 2021.
Amount of accumulated OCI (PSC) to be amortized for the year 2020$
Amount of accumulated OCI (PSC) to be amortized for the year 2021$
schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of pension expense for 2020 and 2021.
Year 2020 2021
Projected Benefit
Obligation
Plan
Assets
10%
Corridor
Accumulated
OCI (G/L)
Minimum Amortization
of (Gain) Loss
total amount of pension expense to be recognized byMontyCompany in 2020 and 2021.
Pension expense for 2020$
Pension expense for 2021$
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